General Dynamics (GD) Q4 2023 earnings summary

Executive summary

• FY 2023 revenue reached a record $42.272B, up 7.3% YoY, with growth across all four segments; operating earnings were $4.245B and year-end backlog was $93.627B.

• Q4 revenue of $11.668B and diluted EPS of $3.64 were quarterly records; operating earnings rose 5.0% YoY to $1.288B.

• Book-to-bill was 1.1x for FY 2023 for the second consecutive year; operating earnings grew sequentially each quarter.

Financial highlights

• FY net earnings were $3.315B, down 2.2% YoY; diluted EPS was $12.02, down 1.4%.

• Q4 net earnings were $1.005B, up 1.3% YoY; diluted EPS was $3.64, up 1.7%.

• FY operating margin was 10.0%, down 70 bps; Q4 operating margin was 11.0%, down 30 bps.

Outlook and guidance

• Robust demand, broad-based segment growth and a $93.6B year-end backlog supported positioning for growth and performance.

• Aerospace was positioned for a surge in deliveries following FAA certification of the G700, supported by continued demand and solid execution.